There Are Many Real-Life Examples of Factor-Intensity (The Ratio of Capital

question 58

Multiple Choice

There are many real-life examples of factor-intensity (the ratio of capital to labor) differences in the same industries in different nations. How does the Heckscher-Ohlin model handle this?

• A) The Heckscher-Ohlin model makes no assumptions about different factor intensities.
• B) The Heckscher-Ohlin model assumes that all firms require equal amounts of capital and labor just to be on the safe side.
• C) The Heckscher-Ohlin model ignores the possibility of different factor intensities and instead assumes that each industry has the same factor intensity in every nation.
• D) Factor-intensity differences do not change the predictive value of the model.

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A cancer of the blood and bone marrow, defined by the overabundance of irregular white blood cells.

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Referring to a single unit or individual element, as opposed to multiple items or a group.

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A word variation that signifies a quantity greater than one.

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A branch of medicine concerned with the study, diagnosis, and treatment of kidney diseases.